In the hustle of day-to-day business operations, a critical aspect often gets overlooked by CEOs and business owners – the long-term transferable value of their business. @George Sandmann, in his insightful book 'Growth Driving Advisor', reveals a concerning trend: while over 60% of CEOs they’ve worked with are focused on profits and cash flow growth, a staggering 80% eventually find themselves unable to afford an exit. Why? Because their businesses lack sufficient transferable value.
This statistic is a stark reminder of an often-neglected truth in business planning. It's not just about the growth we can see and measure today; it's about creating a business that holds its worth, and more, in the future – a business that can thrive independently of its current leadership. This is the essence of transferable value: a business's ability to maintain and grow its value, even when the original leaders step away.
The reality is that building a business with transferable value requires more than just a successful product or service. It involves creating robust systems, cultivating a strong leadership team, and developing a brand that resonates beyond the current market. It's about creating a legacy that lives on and continues to flourish.
This is a wake-up call for all business leaders. It’s essential to look beyond the immediate and short-term gains and start laying the groundwork for a sustainable, transferable value. It's not just for a potential sale or exit; it's about building a resilient business that can withstand changes in leadership and market dynamics.
As we move forward, let’s redefine our goals. Let’s aim not only for growth in profits and cash flow but also for a legacy that endures and prospers. It's time to think long-term – your business's future value depends on it.
Something to think about!!
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